Driving Naari Programme launched in Chandigarh
Chandigarh, In an embarrassment to the Punjab government, Comptroller and Auditor General (CAG) on Friday pointed out “non-adherence” of rules and procedures in purchasing a helicopter for flying Chief Minister Parkash Singh Badal and his son and deputy Sukhbir Singh Badal.
The CAG report, tabled in the state assembly, also indicted the state government on several issues, including a scheme to install Reverse Osmosis (RO) plants in view of pollution of underground water.
It pointed out that the state government invited no tenders and did no evaluation before the purchase of a Rs 36.62 crore helicopter in 2012.
“The civil aviation department purchased a helicopter valuing Rs 36.62 crore in disregard of the rules prescribed for public servant,” the report said.
The state civil aviation department has purchased a specially designed Bell 429 — a twin-engine five-seater helicopter — for flying Badal and his son Sukhbir in 2012, despite opposition from the Congress, said the state is already facing a fiscal crunch.
As many as 675 AC bills amounting to Rs 1,772.10 crore were awaiting adjustment as on March 31 2014.
The CAG, in its reports pointed to various irregularities, including spending without any budgetary provision, not providing utilisation certificates, instances of theft and loss of assets, expenditures not coming up to the budgeted provisions and non-realisation of receipts from concerned departments.
The CAG also pulled the government’s Home Affairs and Justice Department, held by Sukhbir, for procuring arms worth Rs 2.17 crore in the last three years “without compatible” ammunition.
“These arms are lying idle,” the reports says. “Arms valuing Rs 2.17 crore procured without compatible ammunition, without ensuring requisite specifications and without assessing requirement led to idle expenditure.”
Central Sales Tax of Rs 3.35 crore was paid in excess of the prescribed rates in purchase of arms, it said, adding that “custody or arms and ammunition was not as per norms and those were not being periodically examined for its serviceability due to non-availability of ammunition examiner.”
The money for constructing Rajasthan-Sirhind canal was “diverted,” said the report, adding the non-disbursal of money by the state government despite the availability of central funds and funds from the government of Rajasthan resulted in blockade of funds of Rs 123.09 crore and ‘denial of intended benefits to the farmers.”
“Deficient planning led to irregular expenditure of Rs 14.84 crore on installing RO plants,” the report said, adding that a sum to the tune of Rs 4.25 crore was incurred on 37 RO plants with ‘Zero’ penetration level (installing ROs where canal water was available).
As many as 19 RO plants involving Rs 1.62 crore were found non-functional, the CAG said.
The report said that during the year 2013-14, the revenue expenditure was Rs 41,641 crore and the revenue receipts were Rs 35, 104 crore.
The revenue receipts grew at an annual average rate of 11.69 per cent during 2009-10 to 2013-14 whereas revenue expenditure grew at an annual average rate of 10.39 per cent.
The revenue expenditure continued to constitute a dominant portion (93 to 95 per cent) of the total expenditure during this period.
Though Punjab passed the Fiscal Responsibility and Budget Management Act in 2003, the state could not contain its revenue deficit as per targets fixed by the Fiscal Responsibility and Budget Management A\ct.
During the current year, it was revenue deficit was 2.06 per cent against the target of 0.60 per cent of Gross State Domestic Product (GSDP) in Fiscal Responsibility and Budget Management Act.
However, the fiscal deficit at 2.77 per cent of GSDP in the current year was within the target of 3.00 per cent fixed under the Fiscal Responsibility and Budget Management (Amendment) Act, 2011.
The report said the capital expenditure during the current year was only 28.21 per cent and 30.22 per cent of the projections made in the Fiscal Consolidation Roadmap of the State and budget estimates, respectively, indicating that it wasn’t given priority.
The average return on Punjab Governments investments in Statutory Corporations, Joint Stock Companies and Cooperative Societies, among others, was almost negligible (0.01 to 0.05 per cent) during the period 2009-10 to 2013-14, while the average rate of interest paid by the Government of Punjab on its borrowings was between 7.72 and 8.04 per cent during the same period.
The CAG said that though the debt-GSDP ratio at 32.24 per cent was within the target fixed (39.80 per cent) under Fiscal Responsibility and Budget Management Act, yet the borrowed funds were mostly used for redemption of past debts.
As much as 22 per cent of the revenue receipts were used to meet the burden of interest payments.
As on March 31, 2014, the state government owes 1,814.62 crore (pertaining to the period August 2007 to March 2014) to Punjab State Civil Supplies Corporation Limited on account of payment of differential cost (i.e. difference between purchase cost and the issue price to beneficiaries) under Atta Dal scheme.
During 2009-10 to 2013-14, the total public debt increased from Rs 53,252 crore in 2009-10 to Rs 78,669 crore in 2013-14 registering annual average growth of 9.55 per cent.
The share of market borrowings in total public debt went up from 42 per cent in 2009-10 to 64 per cent in 2013-14.
The state government has constituted a Sinking Fund for redemption/amortisation of loans raised by it in the open market. But no contribution was made in sinking fund during 2013-14 and there was no balance in this fund, the report said.
In the absence of this fund, the government has no option but to raise new debt every year to repay the debt of earlier years.
As many as 69.11 per cent of current debt was utilised for repayment of earlier debt during 2013-14, the report said.
The state government’s budgetary process has not been sound during the year with errors in budgeting and persistent savings. Excess expenditure of Rs 5,362.17 crore incurred during 2007-13 requires regularisation.
An expenditure of Rs 528.78 crore was incurred without making any budget provision. In 25 cases, re-appropriation orders proved unnecessary because expenditure did not come even up to the level of budget provisions and in other 12 cases reduction of provision also proves were not judicious as there was excess expenditure under these cases.
In many cases, anticipated savings of Rs 9,357.92 crore were not surrendered leaving no scope for utilising these funds for other developmental purposes, the report said.
The CAG pointed out that there were inordinate delays in furnishing utilisation certificates against the grants released by various Government Departments as 132 utilisation certificates amounting to Rs 134.85 crore were not furnished to the Pr. Accountant General (A&E) as on 31 March 2014.
Non-submission/ delayed submission of annual accounts and Separate Audit Reports by four autonomous bodies set up by the state government were also noticed.
There were 161 instances of theft, loss and misappropriation involving an amount of Rs 1.39 crore.
The CAG said that the quality of accounts of PSUs needed improvement.
Of the 22 accounts of working companies forwarded to Audit during 2013-14, the statutory auditors had given unqualified certificates for seven accounts, qualified certificates for fourteen accounts, adverse certificate for one account.
Two accounts of statutory corporations finalised during October 2013 to 30 September 2014 received qualified certificates.
The reports of the statutory auditors on internal control of the companies indicated several weak areas.
